Under UK law, a labour only subcontractor is an employee. Therefore, as the employer, you become responsible for the health and safety of your subcontractor while they are at work. This includes making sure you have employers’ liability insurance in case something goes wrong.
Are employers responsible for subcontractors?
Employers aren’t responsible for contractors in the same way they are for employees — they have slightly different responsibilities regarding contractor health and safety. The responsibility is shared mainly between employers/clients and contractors, but each party has their own duties to fulfil.
Are subcontractors employees UK?
What happens if they are considered an employee? Because of the difference in contract, subcontractors are not usually considered employees. However, even though you call them a subcontractor there are occasions when they would still, legally, be considered an employee.
Does a subcontractor need public liability insurance?
When working with labour only subcontractors, you are legally required to have employers’ liability insurance for them. You do not need employers’ liability insurance for bona fide subcontractors, but you should ask for proof that they are licensed and that they have public liability insurance before you hire them.
What happens if a contractor doesn’t pay a subcontractor UK?
When a contractor does not pay a subcontractor within the agreed terms then the subcontracting party is entitled to pursue Debt Collection action to recover what is owed to them. This will be tasks such as organising, instructing and supervising all the subcontractors that are involved with the project.
Can a contractor withhold payment to a subcontractor UK?
When Can Contractors Withhold Payment From Subcontractors? The Main contractor is lawfully able to refrain from payment if the work or goods supplied by a subcontractor are deemed not fit for purpose. Evidence of this should always be provided along with the option to rectify any shortcomings.
